Caesarstone Earnings: Here’s Why Investors are Buying Shares Now

Caesarstone Sdot-Yam Ltd (NASDAQ:CSTE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 11.99%.

Caesarstone Sdot-Yam Ltd Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 51.43% to $0.53 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 17.97% to $89 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Caesarstone Sdot-Yam Ltd reported adjusted EPS income of $0.53 per share. By that measure, the company beat the mean analyst estimate of $0.41. It beat the average revenue estimate of $84.54 million.

Quoting Management: Yosef Shiran, Chief Executive Officer, commented, “We are pleased to report another record quarter for sales and profitability, particularly in our fast-growing North American markets where quartz is increasingly embraced. This includes our Super-Natural design which has demonstrated rapid, global success. We continue to look forward to completing capacity expansion projects both in Israel and the United States to reinforce our growth capability, maintain our leadership position and create growth and value for both our customers and our shareholders.”

Key Stats (on next page)…

Revenue increased 16.43% from $76.44 million in the previous quarter. EPS increased 65.63% from $0.32 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.49 and has not changed. For the current year, the average estimate has moved up from a profit of $1.56 to a profit of $1.57 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)